February 3, 2015

States Propose Taxes on E-Cigarettes

With the use of e-cigarettes on the rise, a growing number of states are considering taxing them.

Photo by John Williams / CC BY 2.0
According to the National Conference of State Legislatures (NCSL), Minnesota and North Carolina are the only states to date that have imposed taxes on e-cigarettes.  In Minnesota, the tax is 95% of the wholesale price.  In North Carolina, the tax is $0.05 per milliliter.


As the NCSL table below shows, at least 15 other states considered such taxes in recent legislative sessions, but did not enact them.  Proposals are pending in six other states.


Up in Vapor
Passed
 
Minnesota
Increased from 75% to 95% wholesale
North Carolina
5 cents per 1.0 ml.
Pending
 
Michigan
 15 cents per 1.5 ml
New Jersey
   75% wholesale
Ohio
   49% wholesale
Defeated
 
Delaware
30% wholesale
Hawaii
85% wholesale
Indiana
24% wholesale
Kentucky
1. 15% on inventory
2. 20% wholesale
Maine
Cigarette equivalency tax
Massachusetts
90% wholesale
New York
 75% wholesale
Oklahoma
5 cents per 1.5 ml.
Oregon
81% wholesale
Rhode Island
80% wholesale
South Carolina
 5 cents per 1.0 ml.
Utah
 86% wholesale      
Vermont
 92% wholesale
Washington
95% wholesale
Wisconsin
84% wholesale
Pre-filed for 2015
 
Nevada
 
New Mexico
 
Virginia
 


Sources: NCSL and the American Vaping Association, December 2014